SEBI Notifies Common Advertisement Code Allowing Brand-Level Celebrity Endorsements — October 16, 2026

Capital markets regulator Securities and Exchange Board of India (SEBI) has officially notified a comprehensive Common Advertisement Code (CAC) for market intermediaries. The unified regulatory framework permits registered intermediaries to engage celebrities for brand-level and entity-level promotional campaigns, ending fragmented marketing norms while establishing clear guardrails to safeguard retail investors.

The framework applies across key SEBI-registered entities, including stock brokers, depository participants, mutual funds and asset management companies, portfolio managers, investment advisers, research analysts, and online bond platform providers.

Brand Visibility Permitted, Product Touting Banned

Under the notified guidelines, financial market intermediaries can deploy celebrity endorsements solely to enhance enterprise brand recognition and trust. Endorsements cannot feature inducements, guarantees, or specific claims regarding individual financial products, schemes, or services.

Celebrity endorsements remain an explicit exception to SEBI's shift away from regulatory pre-approvals. Any commercial featuring a celebrity must receive prior vetting and clearance from the designated supervisory body or SEBI before public dissemination.

SEBI has also mandated that costs associated with celebrity engagements must not be passed down to retail investors or charged to mutual fund unitholders as scheme expenses.

Easing Compliance: Shift to Post-Issuance Filings

The new framework marks a major deregulation milestone under the regulator's broader Ease of Doing Business agenda. Previously, several intermediary classes faced cumbersome pre-release clearances that often delayed marketing campaigns.

Key structural shifts under the Common Advertisement Code include:

• Abolition of Prior Clearances: Registered intermediaries no longer require mandatory prior approval for regular non-celebrity promotional campaigns.
• Post-Issuance Reporting: Intermediaries must report newly issued advertisements to their respective supervisory bodies within three working days of release.
• Exclusion of Operational Notices: Routine factual communications, corporate disclosures, transaction receipts, and investor education initiatives are explicitly distinguished from promotional materials and exempted from advertising scrutiny.

Strict Consumer Protections and Disclosures

To prevent misleading promotional tactics, the code reinforces strict prohibitions on aggressive marketing mechanisms. The regulations forbid the use of dark patterns, deceptive consumer testimonials, unwarranted comparisons between asset classes, promises of fixed returns on volatile securities, and unapproved usage of logos belonging to SEBI or stock exchanges.

Furthermore, intermediaries referencing historical ratings or performance rankings in advertisements may only cite scores verified by a Past Risk and Return Verification Agency (PRRVA).

By establishing uniform norms across broking firms, asset managers, and advisory platforms, SEBI aims to streamline compliance while ensuring domestic investors navigate transparent and factual market promotions.

Tags: SEBI Stock Brokers Mutual Funds Portfolio Management Services Capital Markets